If a $10 Sales Tax Is Imposed on a Good

question 159

Multiple Choice

If a $10 sales tax is imposed on a good and the equilibrium price increases by $10,the tax is

• A) split between buyers and sellers but not evenly.
• B) paid fully by sellers.
• C) paid fully by buyers.
• D) split evenly between buyers and sellers.
• E) perhaps split between buyers and sellers but it is impossible to determine the incidence without further information.

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Definitions:

Sample Size

The number of observations or replicates included in a statistical sample.

Confidence Level

The probability that the value of a parameter falls within a specified range of values.

Population Standard Deviation

A measure of the dispersion or spread of all the data points in a population dataset.

Interval Estimate

A range of values derived from sample data that is likely to contain the value of an unknown population parameter.